Rates on the Rise as Ecomony Improves

I hope you are not one of those buyers waiting for a further reduction in housing prices to make your move. If so, you may be in for a little shock. Rates for 30 year mortgages have been rising rapidly for over a month, now approaching a level over 5%. Just a little while ago, rates were in the low 4% range.
A 1% rise in the rate equates to a 10% reduction in buying power. House prices are not falling that fast so buyers are essentially losing ground if they are waiting for those lower prices. Many buyers are now finding that they are no longer approved for the same amount with this increase in rates. Get with your mortgage person and ask for an update and how these higher rates affect your buying power. There is still going to be a lot of regulatory changes as we head into the new year and I will keep you informed. Have a wonderful Holiday Season!